Joshua Kennon is a Managing Director of Kennon-Green & Co., a private asset management firm specializing in global value investing for affluent and high net worth individuals, families, and institutions. Nothing in this article or on this site, which is Mr. Kennon's personal blog, is intended to be, nor should it be construed as, investment advice, a recommendation, or an offer to buy or sell a security or securities. Investing can result in losses, sometimes significant losses. Prior to taking any action involving your finances or portfolio, you should consult with your own qualified professional advisor(s), such as an investment advisor, tax specialist, and/or attorney, who can help you consider your unique needs, circumstances, risk tolerance, and other relevant factors.

Mental Model: Using the Primary Mission of Your Life to Determine the Hierarchy of Priorities Between Task and Relationship One of my mentors from early in my career shared a mental model that has been a fantastic guideline and framework through which I’ve conducted my life. It involves determining the hierarchy between personal relationships and…

Americans Continue to Deleverage as Measured by Average Household Debt as a Percentage of After-Tax Income Paul Wiseman wrote in a recent Associated Press article: “Soaring housing prices in the mid-2000s made millions of Americans feel wealthier than they were. They borrowed against the inflated equity in their homes or traded up to bigger, more…

In the most recent Berkshire Hathaway shareholder letter, Warren Buffett remarked that the three best investments he ever made included his home in Omaha (the other two were wedding rings). He conceded that he would have had more money if he had instead rented and invested the cash, but the utility of the home far outweighed the opportunity cost. Now that I am in my late twenties, I understand what he meant.

In 1960, Miller Gorrie was around 25 years old. Throughout his life, he had taken his earnings from paper routes and poured them into IBM stock, which had compounded at 20%+ for many years. This led to the young man possessing a portfolio worth more than $100,000, which adjusted for inflation, is more than $728,000…

Berkshire Hathaway shares are now trading at around the lowest valuation relative to earnings and assets that they have since the dot-com bubble in the late 1990s. How is that possible? As the famed holding company of Warren Buffett has added businesses such as Burlington Northern Santa Fe, the stock price has treaded water so each dollar invested at today’s price represents more profit and equity than it did in the past.

Let me tell you something – no matter how rich you are, no matter how much stuff you can afford, no matter how successful you become – there is no better feeling than a completely random, awesome surprise that you aren’t expecting that comes from nowhere out of left field! It’s the grown-up equivalent of…

I am convinced that the Series I savings bond program remains one of the most underrated investments for the average American in history. So much so that I wrote tens of thousands of words on the topic over at my the Investing for Beginners site. But tonight, I was writing a new piece of content…

Dinner tonight consisted of bow tie basil pesto pasta. The recipe included pine nuts, garlic, fresh basil leaves, parsley, extra-virgin olive oil, salt, Parmesan cheese, and farfalle. It was very good; we both enjoyed it a lot. I imagine it would even be good cold in a packed lunch, but that is just a hunch.…

Tonight, I reorganized the master bathroom at home and came across several bottles and products of Brut. The company, once a luxury brand, has become one of the cheapest two-buck-chuck colognes in the United States and sells for a couple dollars at Wal-Mart. Although I’m normally known for my obsession with high-end fragrances, even going so far as to special order scents from overseas and paying hundreds of dollars per ounce just to sample a new perfume house offering, this infamous brand still sits proudly on my shelf along with the most expensive and exclusive fragrances in the world. Why? Because it reminds me of my grandfather. It was his cologne of choice and the moment I smell it, I’m instantly transported back to my childhood.

You all just love writing me about this topic, don’t you? Wow. Okay. I’m going to use it as a way to explain how I process business strategy and investing decisions, too, though because, frankly, that is what I’m in the mood to talk about right now and I can introduce you to the idea…